bond trading definition
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What is a 'Bond' Loading the player... A bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
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How Bonds are Sold - Your Transaction Costs With respect to the secondary market, municipal bonds are traded over-the-counter. What this means is that municipal bonds are not traded on an exchange. When you buy or sell a bond, it is being sold or bought by a dealer. Compare this to a stock trade, when you place a sell order, the order simply gets routed to an exchange or market maker to get executed.
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What is 'Swing Trading' DEFINITION of 'Swing Trading' Swing trading attempts to capture gains in a stock (or any financial instrument) within an overnight hold to several weeks. Swing traders use technical analysis to look for stocks with short-term price momentum.
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- 1. The process of offering securities as an attempt to raise funds. Companies may issue bonds or shares to investors as a method of financing the business. 2. A series of stocks or bonds that have been offered to the public. A bond or stock issue relates to the set of instruments that were released under one offering.
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bond in Chemistry topic bond in Chemistry topic. From Longman Dictionary of Contemporary Englishbondbond1 /bɒnd $ bɑːnd/ ●●○ AWL noun [countable] 1 moneyBFS an official document promising that a government or company will pay back money that it has borrowed, often with interest My father put all his money into stock market bonds.
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FAQ Proprietary trading (prop trading) occurs when a firm trades stocks, bonds, currencies, commodities, derivatives, or any other financial product, using the firm’s own money.roprietary trading (prop trading) occurs when a firm trades stocks, bonds, currencies, commodities, derivatives, or any other financial product, using the firm’s own money.
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- Bonds A bond is any interest-bearing or discounted government or corporate security that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals, and to repay the principle amount of the loan at maturity.
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Day trading Day trading is speculation in securities, specifically buying and selling financial instruments within the same trading day. Strictly, day trading is trading only within a day, such that all positions are closed before the market closes for the trading day. Many traders may not be so strict or may have day trading as one component of an overall strategy. Traders who participate in day trading are called day traders.
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- What determines whether a drink will bu…rn is what it is made of, not what it's called. Cognac could burn if it has a high enough alcohol percentage. Most 80 proof liquors do not burn, but most 100 proof do, meaning somewhere in there, around 90 proof, is the point where it could be flammable.
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- (July 2011) Basis trading is a financial trading strategy which consists of the purchase of a particular financial instrument or commodity and the sale of its related derivative (for example the purchase of a particular bond and the sale of a related futures contract).
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Bond fund A bond fund or debt fund is a fund that invests in bonds, or other debt securities. Bond funds can be contrasted with stock funds and money funds. Bond funds typically pay periodic dividends that include interest payments on the fund's underlying securities plus periodic realized capital appreciation. Bond funds typically pay higher dividends than CDs and money market accounts. Most bond funds pay out dividends more frequently than individual bonds.
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Bond (finance) In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date.n finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date.
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- The money market is a subsection of the fixed income market. We generally think of the term fixed income as being synonymous to bonds. In reality, a bond is just one type of fixed income security.
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DEFINITION of 'Arbitrage Bond' Arbitrage Bond. DEFINITION of 'Arbitrage Bond'. A debt security with a lower interest rate issued by a municipality prior to the call date of the municipality's existing higher-rate security. Proceeds from the issuance of the lower-rate bonds are invested in treasuries until the call date of the higher-interest bonds.
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Corporate bond A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, M&A, or to expand business.n this case the bond, a zero-coupon bond, is sold at a discount (i.e. a $100 face value bond sold initially for $80). The investor benefits by paying $80, but collecting $100 at maturity. The $20 gain (ignoring time value of money) is in lieu of the regular coupon.
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What is a 'Bond' These bonds typically trade at a premium to non-callable debt due to the risk of being called away and also due to their relative scarcity in the bond market. Other bonds are putable, meaning that creditors can put the bond back to the issuer if interest rates rise sufficiently. The majority of corporate bonds in today's market are so-called bullet bonds, with no embedded options and a face value that is paid immediately on the maturity date.
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Why is over the counter (OTC) bond in secondary market good? Like stocks, after issuance in the primary market, bonds are traded between investors in the secondary market. However, unlike stocks, most bonds are not traded in the secondary market via exchanges. Rather, bonds are traded over the counter (OTC). There are several reasons why most bonds are traded OTC.
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Bond market Bond market. The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills, and so on.
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Bond Funds A bond mutual fund is a mutual fund that invests in bonds. Bond mutual funds can contain all of one type of bond (municipal bonds, for instance) or a combination of bond types.
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- Economic Definition of bond. Offline Version: PDF. Term bond Definition: The general term for a long-term loan in which a borrower agrees to pay a lender an interest rate (usually fixed) over the length of the loan and then repay the principal at the date of maturity.
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DEFINITION of 'Bond Floor' Bond Floor. DEFINITION of 'Bond Floor'. 1. The lowest value that convertible bonds can fall to, given the present value of the remaining future cash flows and principal repayment. The bond floor is the value at which the convertible option becomes worthless because the underlying stock price has fallen substantially below the conversion value.
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DEFINITION of 'Bond Insurance' Callable Bond A bond that can be redeemed by the issuer prior to its maturity. ... Call Risk The risk, faced by a holder of a callable bond, that a bond issuer ... American Callable Bond A bond that can be redeemed by the issuer at any time prior to ... Bond A debt investment in which an investor loans money to an entity ...
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Definition of margin trading Definition of margin trading. Also called buying on margin. A method of buying shares that involves borrowing a part of the sum needed from the broker executing the transaction. The collateral for the loan is normally securities in the investor's account.
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Economic Definition of bond. Defined. Economic Definition of bond. Defined. Term bond Definition: The general term for a long-term loan in which a borrower agrees to pay a lender an interest rate (usually fixed) over the length of the loan and then repay the principal at the date of maturity. Bond maturities are usually 10 years or more, with 30 years quite common.
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- Bond Covenant. An agreement between the issuer and holder of a bond, requiring or forbidding certain actions of the issuer. Positive covenants require actions while negative covenants forbid them.